28 F. Cas. 414 | U.S. Circuit Court for the District of Massachusetts | 1867
The theory of the plaintiffs is, that the yarn is to be considered as a separate and independent manufacture, that a tax of five per centum, should be assessed upon the full value of the yarn, and a second tax of the same rate upon the full value of the shawls and skirts, without any reduction or allowance for the-tax on the yarn. The defendants deny that proposition and contend, first, that they should pay no tax on the yam, as they have-already paid a tax upon the full value of the woven articles; second, that if they are held to pay a tax on the yam, then the tax on. the fabrics should only be for their increased value over the yam from which they were made. Articles of dress for the wear oi men, women, or children are, by the nine-
The second general proposition advanced by the defendants is, that yam such as that manufactured by the defendants was not subject to taxation under the revenue acts in force at the time the taxes in this case were assessed. The principal reason assigned in support of the proposition is, that yam such as that from which these shawls and skirts were made is not known in the market as an article of trade. But the agreed- statement shows that the defendants buy wool, spin it into yarn, dye or bleach the yam, and then weave it into webs for shawls and webs for Balmoral skirts; and the act of congress expressly provides that thread and yarn and warps for weaving shall be regarded as manufactures and be subject to a duty of five per centum ad va-lorem. The construction of the clause assumed by the defendants interpolates an exception not to be found in the provision. They agree that yam for weaving, except such as is not known in the market as an article for trade, is declared to be a manufacture, and is subject to duty under that clause; but the clause contains no such exception, and the court possesses no power to allow it. Reference • is made • to the fact that yams manufactured exclusively for weaving under the act of the 1st of July, 1862, were not regarded as manufactures subject to duty, but the answer to that suggestion is that the law was changed by the subsequent revenue act 12 Stat. 460-465; 13 Stat. 266.
Another suggestion is, that the amendment in the act of the 3d of March, 1865, is simply declaratory of the trae construction of the clause in question, and that the court should regard the last-named provision as the tme exposition of the one found in the prior act of congress. 13 Stat. 477. The purport of the amendments is, that thread and yam and warps sold before weaving are still regarded as manufactures, but if the thread, yam, or warp has paid the duty, the cloth, fabric, or article made of such thread,
Objection is also made to the right of the plaintiffs to recover in this case, because it is insisted that the remedy by distraint, as given in the act of congress, is the exclusive remedy in the case. 13 Stat. 258, 259; Andover & M. Turnpike Corp. v. Gould, 6 Mass. 44; Bangor House Proprietary v. Hinckley, 3 Fairf. 388; Honcrief v. Ely, 19 Wend. 405.
Extended argument upon this' subject, however, is unnecessary, as the question is regarded as settled by the decisions of the supreme court. The same objection was made in the case of Meredith v. U. S., 13 Pet. [38 U. S.] 493, which was a suit for duties on imports. Duties due upon all goods imported, say the court in that case, constitute a personal debt due to the United States from the importer, independently of any lien on the goods or any bond given for the duties. U. S. v. Lyman [Case No. 15,-647].
Assumpsit for taxes imposed under the acts of congress providing for internal revenue is also the proper form of action. U. S. v. Cutting, 3 Wall. [70 U. S.] 441; U. S. v. Fiske. 3 Wall. [70 U. S.] 445.
Judgment under the agreement of the parties must be entered in favor of the plaintiffs for the sum of $2,804.45, with interest from the date of the writ.